LemFi Expands to Egypt, Tapping Into $29.6B Remittance Corridor – Tech Labari

LemFi Expansion into Egypt: A Report on Remittance Market Entry and Sustainable Development Goal Alignment

Executive Summary

London-based financial technology firm LemFi has initiated service operations in Egypt, targeting the nation’s substantial remittance market. This strategic expansion aligns with several United Nations Sustainable Development Goals (SDGs) by aiming to provide affordable, efficient, and reliable financial services to the Egyptian diaspora. The move capitalizes on Egypt’s position as a leading recipient of remittances in Africa and its growing digital economy.

Market Analysis and Economic Significance

Egypt’s remittance market presents a significant opportunity, underscored by its direct impact on national economic health and its alignment with SDG 8 (Decent Work and Economic Growth).

• Remittance Volume: In 2024, Egypt recorded $29.6 billion in remittance inflows, a figure that nearly doubled from the preceding year.
• Contribution to GDP: Remittances constitute a critical 6.11% of Egypt’s Gross Domestic Product, highlighting their role in supporting economic stability and growth (SDG 8).
• Market Environment: The expansion coincides with a period of rising digital payment adoption in Egypt, fostering a resilient financial infrastructure as outlined in SDG 9 (Industry, Innovation, and Infrastructure).

Strategic Rationale and Contribution to SDG 10

LemFi’s entry into Egypt is a calculated step to serve the North African corridor, which already includes support for diaspora communities from Morocco and Tunisia. The core strategy is centered on reducing financial inequalities for migrant populations.

1. Target Audience: The service is designed for the Egyptian diaspora residing in the United States, United Kingdom, Canada, and Europe.
2. Core Offering: By providing low-cost and reliable transfers, LemFi directly addresses SDG Target 10.c, which calls for reducing remittance transaction costs to less than 3% and eliminating remittance corridors with costs higher than 5%.
3. Official Mandate: Philip Daniel, Head of Global Expansion and Growth at LemFi, stated, “Egypt’s significance as a remittance destination cannot be understated. The Egyptian diaspora deserves quality service, such as the one we offer.” This underscores the commitment to enhancing financial inclusion for migrant communities.

Corporate and Financial Profile

LemFi’s expansion is supported by a strong financial and operational foundation, enabling its mission to enhance global financial connectivity.

• Global Customer Base: Over 2 million customers served worldwide.
• Total Funding: More than $86 million raised to date.
• Recent Investment: A $53 million Series B round was closed in January 2025.
• Key Investors: The company is backed by prominent firms including Highland Europe, LeftLane Capital, Endeavour Capital, and Y Combinator.

Direct Alignment with Sustainable Development Goals

LemFi’s operational model in Egypt makes direct contributions to several key SDGs:

• SDG 8 (Decent Work and Economic Growth): Facilitating the efficient flow of remittances, which account for 6.11% of the national GDP, directly supports Egypt’s economic resilience and growth.
• SDG 9 (Industry, Innovation, and Infrastructure): The deployment of a digital-first payment platform promotes the development of robust and modern financial infrastructure, increasing access to financial services for all.
• SDG 10 (Reduced Inequalities): The primary goal of offering low-cost transfers actively works to reduce the economic burden on diaspora communities and their families, thereby reducing inequalities and enhancing the financial impact of their contributions.
• SDG 17 (Partnerships for the Goals): This expansion exemplifies a global partnership, leveraging financial technology to connect diaspora communities with their home economy and fostering international cooperation for sustainable development.

Future Outlook

With the establishment of the Egyptian corridor, LemFi is positioned to strengthen its presence across North Africa. Future strategic initiatives are expected to include exploring other high-volume remittance corridors in Africa and the Middle East. This continued expansion will further advance the company’s role in building inclusive and efficient financial ecosystems, reinforcing its commitment to achieving the Sustainable Development Goals on a broader scale.

Analysis of SDGs, Targets, and Indicators in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure
• SDG 10: Reduced Inequalities
• SDG 17: Partnerships for the Goals

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 10: Reduced Inequalities

   • Target 10.c: By 2030, reduce to less than 3% the transaction costs of migrant remittances and eliminate remittance corridors with costs higher than 5%.
     
     Explanation: The article highlights LemFi’s mission to provide “low-cost, reliable transfers” and contribute to a global push to make remittances “more efficient, affordable, and tech-enabled.” This directly aligns with the goal of reducing the cost of sending money for diaspora communities.

2. SDG 8: Decent Work and Economic Growth

   • Target 8.10: Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all.
     
     Explanation: LemFi, a fintech company, is expanding financial services to the Egyptian diaspora. The article notes that this expansion happens as Egypt sees “rising adoption of digital payments” and “stronger trust in the formal banking sector,” indicating an expansion of access to financial services, which remittances are a part of.

3. SDG 9: Industry, Innovation and Infrastructure

   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.
     
     Explanation: LemFi is building a digital financial infrastructure to facilitate cross-border payments. The article mentions the company’s focus on the “North Africa corridor” and its plans to explore “other high-volume remittance corridors,” which represents the development of transborder infrastructure.

4. SDG 17: Partnerships for the Goals

   • Target 17.3: Mobilize additional financial resources for developing countries from multiple sources.
     
     Explanation: The article emphasizes the massive flow of remittances to Egypt, a developing country, stating it pulled in “$29.6 billion in 2024.” Remittances are a key source of external financial flows, and services like LemFi facilitate this mobilization of resources from diaspora communities (private individuals) to their home country.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. For Target 10.c (Reduce remittance costs):

   • Indicator 10.c.1: Remittance costs as a proportion of the amount remitted.
     
     Explanation: While the article does not state a specific percentage, it implies this indicator by mentioning LemFi’s goal to provide “low-cost” transfers and make them more “affordable.” The success of this initiative would be measured by the reduction in transaction costs for users.

2. For Target 8.10 (Expand access to financial services):

   • Indicator 8.10.2: Proportion of adults (15 years and older) with an account at a bank or other financial institution or with a mobile-money-service provider.
     
     Explanation: The article implies this through the data point of “2M+ total customers served globally by LemFi.” This number serves as a direct measure of individuals using a specific digital financial service, contributing to overall financial inclusion.

3. For Target 17.3 (Mobilize financial resources):

   • Indicator 17.3.2: Volume of remittances (in United States dollars) as a proportion of total GDP.
     
     Explanation: The article explicitly provides data for this indicator by stating that Egypt received “$29.6 billion in 2024” in remittances and that these remittances make up “6.11% of Egypt’s GDP.” This directly measures the volume of financial resources being mobilized.

4. Table of SDGs, Targets, and Indicators

Source: techlabari.com